University of California – Riverside A. Gary Anderson Graduate School of Management PhD in Management

University of California – Riverside A. Gary Anderson Graduate School of Management is among the 132 graduate business programs that provide Doctoral degree in Business Administration. As one of the top rated higher education institute located in Riverside, California, the University of California – Riverside offers PhD in Management through A. Gary Anderson Graduate School of Management. This page details GMAT requirements, types of degree offered, concentrations, and financial costs of University of California – Riverside A. Gary Anderson Graduate School of Management PhD in Management. See LIUXERS.COM for federal school codes in Arkansas.

PhD in Management (More than 2 years)

Program Detail

Program Name PhD in Management
Program Overview The Ph.D. program at UCR fills a growing demand for doctoral students in management in the UC system. It is an academic program that provides candidates with the chance to do intensive research in the field of business. It is built upon an in
Areas of Study
  • Marketing
  • Other: Strategic Management and Organizations
Joint Degree Offered No
Delivery Format Classroom
GMAT Score GMAT Accepting
Tuition & Fees Please contact program for tuition and fees: 1-951-827-6200
Financial Aid Availability Financial aid available, contact school for more information
Start Dates &
Application Deadlines
Start Date Application Date
9/21/2015 3/1/2015
Program Size Class Size: 10
Work Experience
Employment Information

Real Options in Capital Budgeting

F508 is an applied course in capital budgeting under uncertainty and flexibility. Traditional NPV analysis assumes that corporate investments are “now or never” and that they are irreversible. However, most corporate projects have a great deal of flexibility in their timing, scale, etc. Our goal in F508 is to develop more advanced capital budgeting skills so that the student may attack real-world corporate investment decisions in a sophisticated way.

  • Identification of optionality in corporate investments. Before we can apply option pricing theory to corporate decisions, we must be able to correctly characterize the optionality inherent in the projects we are considering.
  • Choosing the proper model for the analysis. The decision-makers goal is to get the best possible approximation of the value of an opportunity given the constraints of time, cost and information. Structured and carefully-defined problems allow for more precision (and thus require more rigor).
  • Handling risk in the proper way. As I will demonstrate, the use of a risk-adjusted discount rate is not appropriate when valuing assets with “optionality.” We must employ Martingale (or risk neutral) pricing techniques.
  • Understanding and handling the convenience yield issue. This is perhaps the most difficult concept to grasp, but it is vitally important to a sophisticated analysis. We must adjust our problem for the “convenience yield” or “rate of return shortfall” of an asset whenever there is an “early exercise” feature (i.e. when the option is American).
  • Clear presentation of analysis and results. The ability to construct a sophisticated capital-budgeting model is irrelevant if its structure and results cannot be communicated in a clear and convincing fashion. This is particularly important for real-option valuation, as most managers do not understand the issues of risk-neutralization and convenience yield. Furthermore, there are many that are skeptical of the assumptions required for a contingent claims analysis. Their critiques must be addressed.